TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
24
Principle 6 – Recognise and manage risks of the Group
The Board regards risk management and internal controls as an integral part of the overall management processes. The
following represents the key elements of the risk management and internal control structure:
(a) An organizational structure in the Group with formally defined lines of responsibility and delegation of authority;
(b) Review and approval of annual business plan and budget of all major business units by the Board. This plan sets out the
key business objectives of the respective business units, the major risks and opportunities in the operations and ensuing
action plans;
(c) Quarterly review of the Group’s business performance by the Board, which also covers the assessment of the impact of
changes in business and competitive environment;
(d) Active participation and involvement by the President, Executive Vice Presidents and Chief Financial Officer in the
day-to-day running of the major businesses and regular discussions with the Management of smaller business units on
operational issues; and
(e) Monthly financial reporting by the subsidiaries to the holding company.
The Board has established a Board Risk Management Committee (“BRMC”) which comprises the following members:
Siew Kah Toong - Chairman
Dato’ Ng Mann Cheong - Member
Dato’ Haji Kamaruddin @ Abas bin Nordin – Member
Dato’ Seow Thiam Fatt - Member
Dato’ Tan Heng Chew – Member (Alternate: Ling Ou Long @ Ling Wuu Long)
The BRMC oversees the risk management framework of the Group, reviews the risk management policies formulated by
Management and makes relevant recommendations to the Board for approval. This enables the Management to identify,
evaluate, control, monitor and report to the Board the principal business risks faced by the Group on an ongoing basis,
including remedial measures to be taken to address the risks. The Group continues to maintain and review its risk management
and internal control procedures to ensure, as far as possible, the protection of its assets and its shareholders’ investments.
During the financial year under review, three (3) BRMC meetings were held to review the principal business risks faced by the
Group and remedial measures to address the risks within the risk appetite of the Group.
In line with the MCCG 2012 and the Listing Requirements of Bursa, the Company has in place a Group Internal Audit (“GIA”)
function, which reports directly to the Audit Committee on the adequacy and effectiveness of the current system of internal
control from the perspectives of governance, risks and controls. All internal audits carried out are guided by internal auditing
standards promulgated by the Institute of Internal Auditors Inc, a globally recognized professional body for internal auditors.
The GIA is independent of the activities it audits and the scope of work covered by the GIA during the financial year under
review is set out in the Audit Committee Report of the Company.
Principle 7 – Ensure timely and high quality disclosure
The Board is aware of the need to establish corporate disclosure policies and procedures to enable comprehensive,
accurate and timely disclosures relating to the Company and its subsidiaries to be made to the regulators, shareholders
and stakeholders. Accordingly, the Board has formalised the corporate disclosure policies to comply with the disclosure
requirements as stipulated in the Listing Requirements of Bursa, and designated the persons authorised and responsible to
approve and disclose material information to Bursa, shareholders and stakeholders.
To augment the process of disclosure, the Company’s website has a dedicated section on corporate governance, where
information on the Company’s announcements to Bursa, the Charter, rights of shareholders and the Company’s Annual
Report may be accessed.
CORPORATE GOVERNANCE STATEMENT
